People still prefer websites and cards to mobile wallets

NEW DELHI: Demonetisation of high-value currency notes last year gave a big push to mobile wallets. India’s mobile wallet transactions were up nine-fold in two years to reach $9 billion as of April 2017, according to an estimate by New York-based financial services firm Morgan Stanley.

In the report, internet banking emerges as the most preferred mode of online/mobile transactions followed by debit and credit cards. Mobile wallets still have a long way to go in the Indian market.

To get a 360-degree view of new-age Indian consumers' financial behaviour, ET Wealth has commissioned a wave of 12 self-administered online surveys. This report, the first in the series, captures the penetration across asset categories, detailed (individual & household) profile, current usage of the financial products and their future intent with approximately 10,000 respondents, all urban internet users.

Thirty-three per cent of urban internet users surveyed prefer net banking for online/mobile payments, 25 per cent prefer debit card and 23 per cent prefer credit card. Only 5 per cent prefer mobile wallets to make online/mobile payments, even fewer than 8 per cent who prefer cash on delivery.

Preferred payment modes for online/mobile transactions

The ubiquitous cash continues to be a popular means of payment, despite the demonetisation drive. The launch of UPI and the BHIM (Bharat Interface for Money) app marks the onset of another era in the digital payments landscape in India. While e-wallets have huge numbers to flaunt, the BHIM app is gaining steam.

According to experts, in the long term, systems like UPI stand a better chance as they enable direct transfer from bank accounts to pay.